Answer:
False
Explanation:
It is the opposite case in terms of demand and supply
Kate and Sarah own a bakery together. The two figures illustrate the production possibilities available to them if they work at their bakery for 8 hours a day.
If kate and sarah both specialize in the good in which they have a comparative advantage the;
Answer;
-the total production of bread will be 16 and total production of pies will be 17.
Explanation;
-Comparative advantage is the ability of a firm or individual to produce goods and/or services at a lower opportunity cost than other firms or individuals. A comparative advantage gives a company the ability to sell goods and services at a lower price than its competitors and realize stronger sales margins.
-It is important to note that a comparative advantage is not the same as an absolute advantage. The latter implies that one is the best at something, while the former relates more to the costs of the particular endeavor.
Answer:
Consider the following calculations
Explanation:
A - Increase in oil prices decreases SRAS (SRAS shifts to the left) and increase in consumer confidence will increase AD (AD will shift to the right).
B - Household wealth falls, as a result AD will decrease (AD shifts to the left) and firms expect the price level to fall - decrease in firm's expectations about future price will cause forms to increase aggregate supply now. As a result, SRAS shifts to the right.
C - Federal reserve cuts interest rate, Therefore cost of borrowing decreases, investment increases, aggregate demand increases. AD shifts to the right.
New technology makes workers more productive. Aggregate supply increases. SRAS shifts to the right.
D - Both AD and SRAS shifts to the left.
The bank can repossess the car and if anything is used as collateral they can claim that as well. It is best to not get yourself in debt you cannot pay off.
One way to calculate debt is to figure out what your income is per week, and divide that by the weekly payments for the car. Lets say you make 3200, and your debt is 450 a week.
As shown below
<em>Income ÷ Payments </em>
3200 ÷ 450 = 0.14
Now multiply that by 100 to get your percentage,
0.14 x 100 = %14
Financial advisors recommend that you keep your debt-to-income ratio under 30%.
Answer:
D) readily available substitute products.
Explanation:
Porters five explains the following
- Threat of new entry
- Bargaining power of suppliers
- Bargaining power of buyers
- Threat of substitution
A) lack of importance of the buyer to the supplier group.
True. Buyers have less bargaining power as compared to suppliers
B) high differentiation by the supplier.
True. Higher differentiation leads to competitive advantage and rivalry within the market.
C) dominance by a few suppliers.
True. This falls under threat of new entry as the fewer suppliers create barriers such as capital requirement and licensing requirements to prevent new entrants
D) readily available substitute products.
False. This means there are more suppliers in the market that are ready to substitute a product thus making suppliers less powerful.
